Crypto mining rig maker Canaan reports record-high profits

Chinese cryptocurrency mining machine producer Canaan recorded outstanding progress in Q2 2021 regardless of a sweeping crypto crackdown in China and swings within the value of bitcoin, as market demand for the corporate’s {hardware} stays sturdy.

The Hangzhou-based agency noticed its income attain a document excessive of RMB 1.08 billion (USD 167.5 million) within the second quarter ended June 30, in keeping with its financial report launched on Wednesday. As market demand for bitcoin mining machines grows, Canaan offered computing energy amounting to five.9 million TH/s—the strongest quarterly whole gross sales within the firm’s historical past.

Canaan achieved internet profits to the tune of RMB 427.1 million (USD 66.2 million), realizing practically 900% year-on-year progress atop RMB 43.3 million (USD 6.7 million) in 2020.

Canaan additionally recorded important internet earnings of RMB 245.0 million (USD 37.9 million), in comparison with RMB 1.2 million in Q1 when there was a value spike in bitcoin.

The firm’s working bills went from RMB 62.2 million (USD 9.6 million) in Q2 2020 to RMB 261.6 ml (USD 40.5 million) within the newest quarter, marking a 320% enhance because it recruited new R&D employees and elevated its advertising and marketing funds.

“Despite sudden regulatory coverage dynamics and bitcoin value volatility, we achieved record-high top-line outcomes,” mentioned Zhang Nangeng, chairman and CEO of Canaan.

Over the summer time, the Chinese authorities ordered all mining farms within the nation to close down. This led to a mass migration of miners to North America and Europe. With fewer miners on-line, bitcoin provides dived, value volatility elevated, and demand for brand new rigs skyrocketed. In this development, mining machine makers reaped the advantages.

Judging from the overall energy consumed by electricity-hungry cryptocurrency mining machines, the frenzy continues. Bloomberg reported that the mining trade has already used extra energy thus far this yr than in all of 2020, and the speed of energy consumption is predicted to grow to be even steeper. By the tip of this yr, the sector could have used 91 TWh of power, practically as a lot as your complete annual energy consumption of Pakistan.

Canaan expects whole revenues to extend by 10–30% for the following quarter. The firm plans to deploy much more computing energy to grab the super alternatives of bitcoin mining, Zhang famous.

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